European Court Annuls Commission Decision, Orders Investigation into Lottery License Grants for Compliance with EU State Aid Rules

16 de noviembre, 2023

The European Court of Justice (ECJ) has ruled in favor of the European Gaming and Betting Association (EGBA) in its appeal against the European Commission’s refusal to initiate a state aid investigation into the issuance of lottery licenses in the Netherlands.

In 2020, the Commission determined that a formal EU investigation into the Dutch licensing process was unnecessary, asserting that it did not involve illegal state aid. Consequently, the Commission closed the initial complaint filed by EGBA in 2016.

EGBA contested the Commission’s decision in March 2021, arguing that the renewal of multiple lottery licenses without market-rate consideration and a non-discriminatory process constituted illegal state aid. EGBA contended that the Commission’s refusal violated its rights under EU law.

In today’s ruling (Case T 167/21), the ECJ sided with EGBA, confirming the infringement of its rights and annulling the Commission’s decision. The ECJ stated:

• “Due to the complete absence of appropriate investigation by the Commission at the preliminary examination stage of whether the contested measure conferred an indirect advantage on those bodies, the fact that this issue was not examined in the contested decision does not make it possible to rule out the existence of serious difficulties in that connection. (paragraph 51).”

According to EU law, any doubt about potential illegal state aid necessitates a Commission investigation. Therefore, the Commission must now initiate a formal state aid investigation to determine whether illegal state aid was involved.

The ECJ also directed the Commission to cover EGBA’s costs for the appeal.

Maarten Haijer, Secretary General of EGBA, stated, “We welcome the ECJ’s ruling to annul the Commission decision and find in EGBA’s favor. The facts of this case raised serious doubts about the Dutch licensing procedure’s compliance with EU law, warranting a formal state aid investigation. We are confident the Commission will now conduct a thorough investigation, and we are ready to provide any necessary information. Consistent enforcement of EU law is crucial across all sectors, including the gambling sector, to maintain the Commission’s role as the guardian of the Treaties.”